AvalonBay CommunitiesAVB +1.85%84 5-Year Yield-on-Cost % is 4.04 as of Jul. 05, 2026, which is 11% above its 10-year median of 3.63. GuruFocus rates AVB with a GF Score™ of 84/100 and a GF Value™ of $207.98 (Fairly Valued). The stock has 5 warning signs investors should review. Among 875 REITs companies, AvalonBay Communities ranks worse than 84% on this metric.
AvalonBay Communities's yield on cost for the quarter that ended in Mar. 2026 was 4.04.
The historical rank and industry rank for AvalonBay Communities's 5-Year Yield-on-Cost % or its related term are showing as below:
AVB'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.77 Med: 3.63 Max: 5.16
Current: 4.04
During the past 13 years, AvalonBay Communities's highest Yield on Cost was 5.16. The lowest was 2.77. And the median was 3.63.
AVB's 5-Year Yield-on-Cost % is ranked worse than 84% of 875
companies
in the REITs industry
Industry Median: 7.2
vs AVB: 4.04
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
AvalonBay Communities 5-Year Yield-on-Cost % Related Terms
AVB vs EQR, ESS, INVH: 5-Year Yield-on-Cost % Comparison
For the REIT - Residential subindustry, AvalonBay Communities's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AvalonBay Communities 5-Year Yield-on-Cost % vs REITs Industry
For the REITs industry and Real Estate sector, AvalonBay Communities's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where AvalonBay Communities's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
AvalonBay Communities (AVB) has a 5-Year Yield-on-Cost % of 4.04 as of Jul. 05, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on AvalonBay Communities and its competitors. This is 11% above median its historical median of 3.63. Over the past decade, AvalonBay Communities' 5-Year Yield-on-Cost % has ranged from 2.77 to 5.16. According to the industry distribution chart, AvalonBay Communities ranks #735 out of 875 companies in the REITs industry, placing it in the top 84%.
Is AvalonBay Communities' 5-Year Yield-on-Cost % too high?
AvalonBay Communities' current 5-Year Yield-on-Cost % of 4.04 is 11% above median its 10-year median of 3.63. Over the past 10 years, this metric has ranged from a low of 2.77 to a high of 5.16. The REITs industry median 5-Year Yield-on-Cost % is 7.20. AvalonBay Communities' value of 4.04 is 43.9% below this industry median. Based on the distribution chart, AvalonBay Communities ranks #735 out of 875 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, AvalonBay Communities has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AvalonBay Communities' 5-Year Yield-on-Cost % compare to EQR and ESS?
According to the REITs industry distribution chart, AvalonBay Communities ranks #735 out of 875 companies for 5-Year Yield-on-Cost %. This places AvalonBay Communities in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 7.20. AvalonBay Communities' value of 4.04 is 43.9% below this benchmark. Historically, AvalonBay Communities' own 5-Year Yield-on-Cost % has ranged from 2.77 to 5.16 over the past decade. While the company's 10-year median is 3.63 vs. the industry median of 7.20, AvalonBay Communities has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a REITs company?
The median 5-Year Yield-on-Cost % among REITs companies is 7.20, based on 875 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AvalonBay Communities's current 5-Year Yield-on-Cost % of 4.04 is 43.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on AvalonBay Communities and its competitors. For the REITs industry, the median 5-Year Yield-on-Cost % is 7.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AvalonBay Communities's current 5-Year Yield-on-Cost % is 4.04, which is 11% above median its own 10-year median of 3.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AvalonBay Communities stock overvalued right now?
Based on GuruFocus' analysis, AvalonBay Communities (AVB) is currently considered Fairly Valued. The stock's GF Value™ is $207.98, compared to a current price of $193.96 — trading 6.7% below its estimated fair value. The current 5-Year Yield-on-Cost % is 4.04, which is 11% above median its 10-year median of 3.63 and 43.9% below the REITs industry median of 7.20. AvalonBay Communities' overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For AvalonBay Communities (AVB), the current 5-Year Yield-on-Cost % is 4.04 as of Jul. 05, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AvalonBay Communities (AVB) Overvalued in 2026?
Based on GuruFocus' analysis, AvalonBay Communities stock appears to be undervalued.
The current stock price of $193.96 is trading 6.7% below its estimated GF Value™ of $207.98.
GuruFocus considers AvalonBay Communities to be Fairly Valued.
Key valuation signals for AVB:
5-Year Yield-on-Cost %: 4.04 (11% above median its 10-year median of 3.63)
GF Value™: $207.98 vs. price of $193.96 (6.7% below fair value)
Industry Position: 43.9% below the REITs median (#735 of 875)
No single metric tells the full story. See the AVB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AvalonBay Communities owns a portfolio of 296 apartment communities with more than 90,000 units and is developing 24 additional properties with approximately 8,600 units. The company focuses on owning large, high-quality properties in major metropolitan areas of New England, New York/New Jersey, Washington, D.C., California, and the Pacific Northwest.
84GF Score
Get the complete analysis for AVB
5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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